The analysis provided in this article shows that, despite the moderate growth in the past, Raytheon's (NYSE: RTN) shares still have room for an upside. The company has shown notable performance due to the ongoing business diversification driven mostly by the introduction of crypto-technologies and several opportunities arising from increased government's military expenses (responsible for 90 percent of total revenue).

The previous year's investments have shown positive dynamics due to increasing expenditures related to long-term projects, which are aimed at future improvements in competitiveness. The depreciation and amortization expenses have not caught up with capital expenditures causing a temporary pressure on free cash flows. The increase in the balance of intangible assets will lead to a slightly greater D&A expense causing tax savings in the future:

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